Investing is more of a common sense than intelligence. An investor with high IQ and low EQ is not intelligent at all. In the contrary world on intelligence is considered as a measured value of IQ, but in the investing world it plays little role. Sure a person with high IQ can calculate the risk and rewards, the sectorial cage growth or even can find his own formula to find multibagger. But if he is fragile on patience and discipline, he won't be the intelligent investor. Investing is a fun process until we see a major loss. When confronted with such situations, we forget everything and the primitive brain of flight or fight gets activated. So most investors sell their holding along with the masses instead of buying more at the discounted price. They know the market is gonna revive sooner and stronger, but they won't listen to their logical mind and keep their selling activity on. Here the fear surmounts every knowledge and experience. So it is important to be an intelligent investor with little common sense and more patience.
Genuine conviction is invariably born from firsthand experience. This is because, innately, our belief systems are wired to accept anything that can be perceived through our sensory experiences, a trait that evolved during our ancestral hunting epochs. Once we acquire such direct experiences, no further evidence is required to cement our belief. These experiences thus become the compass by which we navigate our existence. Hence, the optimum method of learning is through experimentation and introspection, for knowledge acquired in this manner becomes deeply embedded within our psyche, imparting indispensable lessons for personal development and growth. Predominantly, our learning derives from the direct experiences of others who possess a profound understanding and apply this wisdom to enhance their lives. Regrettably, we often fail to leverage this wealth of knowledge to our own advantage.
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